SJM chairman confident about next concession period in Macau

SJM has submitted a proposal to extend its concession for another six months.

Daisy Ho Chiu Fung, chairman of SJM Holdings, says the company has been preparing for the tender process and is confident it will continue operating in Macau.

Macau.- Daisy Ho Chiu Fung, chairman of SJM Holdings, has voiced confidence in the company securing a new concession in Macau’s upcoming retender.

Delivering SJM’s annual report, Fung said: “As of this date, the final terms and conditions of the next concessions have not entirely been determined, but we know that there will be up to six, ten-year concessions, accompanied by important regulatory changes and certain changes in the structure of the concessionaire and its assets.”

She added: “Since the draft revised gaming law was presented by the Macau government in September, we have been preparing for the tender process and confidently looking forward to our continued… presence in Macau.”

Macau casino licences were due to expire in June 2022, but a tender process for renewal has yet to be held due to delays in changes to Macau’s gaming legislation. As a result, Macau has decided to grant extensions on the current casino licences until December 31. All six of Macau’s casino operators have applied for the extensions.

SJM Holdings reports net loss of US$530.3m for 2021

SJM Holdings has reported a full-year loss of HKD4.14bn (US$530.3m) for 2021, compared with a loss of HKD3.03bn for 2020. It blamed ongoing disruptions to tourism due to the Covid-19 pandemic.

Net gaming revenue in 2021 increased by 31.5 per cent year-on-year to nearly HKD9.61bn. The group’s EBITDA loss narrowed by 24.3 per cent to HKD1.58bn. Grand Lisboa Palace saw gross revenue of HKD370m, including HKD200m in gross gaming revenue (GGR). 

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was a negative HKD423m after adjusting for pre-opening expenses of nearly HKD1.03bn.

SJM revealed it accounted for 12.3 per cent of Macau’s gross gaming revenue in 2021, including 16.3 per cent of mass-market table gaming revenue and 4.9 per cent of VIP gaming revenue. Company-wide gross gaming revenue in 2021 increased by 25.3 per cent year-on-year to HKD10.37bn.

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